RIDE - Lordstown Motors is on watch as Foxconn becomes a bigger owner

Lordstown Motors ( NASDAQ: RIDE ) disclosed on Thursday that Stephen Burns holds a 14.1% stake in the company with more than 30M shares in his name. That is the lower than the more than 40M shares he held earlier this year.

Burns was the CEO of Lordstown Motors ( RIDE ) until June 13, 2021 when he resigned following an investigation into allegations that he lied about preorders. He founded the company in 2018.

There are 215.1M shares of Lordstown Motors ( RIDE ) outstanding altogether, with individuals and insiders holding about 18.4% and institutions holdings about 28.5%.

Earlier in the week, Lordstown Motors ( RIDE ) announced that Foxconn has agreed to make an additional investment in the company of approximately $170M subject to certain terms and conditions. About $10M of the investment will be in the form of LMC convertible preferred stock and will be used to fund in three phases development for future electric vehicles in collaboration with Foxconn and its partners. After factoring in the deal, Foxconn will own about 18% of all of the common stock in Lordstown ( RIDE ) and 100% of the preferred shares. General Motors ( GM ) and Workhorse Group ( WKHS ) previously held shares in RIDE.

Shares of RIDE rose 4.91% on Thursday along with most of the rest of the electric vehicle sector. The stock is swapping hands at $1.70 vs. the 52-week range of $1.49 to $7.19.

Read the Lordstown Motors earnings call transcript.

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